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designs, manufactures, and sells electrical and utility solutions to commercial, industrial, utility, and telecommunications markets. Based in Shelton, Connecticut, the company's products include plugs, receptacles, connectors, lighting fixtures, high voltage test and measurement equipment, and voice and data signal processing components.
Companies worth more than $10 billion are generally labeled as “large-cap” stocks, and Hubbell fits this criterion perfectly. The company distinguishes itself as a leading manufacturer of electrical and utility solutions and is renowned for building reliable, resilient, and renewable energy infrastructure.
Despite a 4.8% decline from its 8.3% return over the same time frame.
In the longer term, HUBB stock is up 24.3% on a YTD basis, surpassing XLI’s 15.1% gains. Shares of HUBB have gained 29.4% over the past 52 weeks, compared to XLI’s nearly 25% returns over the same time frame.
To confirm its bullish trend, HUBB has been trading above its 200-day moving average since November last year and has remained above its 50-day moving average since August despite few fluctuations.
Despite missing revenue estimates, shares of HUBB rose 3.5% following its Q2 earnings release on Jul. 30 due to raised full-year 2024 guidance backed by expected improvement in organic growth coupled with the company’s ability to capitalize on opportunities in grid modernization and electrification. Furthermore, HUBB’s adjusted earnings of $4.37 per share surpassed estimates due to significant growth in its Electrical Solutions segment and expansion in adjusted operating margin.
HUBB has outpaced its rival, EnerSys’ marginal decline on a YTD basis and 3.6% gain over the past 52 weeks.
Despite HUBB outperforming the broader sector, analysts remain cautiously optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from 10 analysts' coverage, and the mean price target of $415.12 suggests a premium of just 1.5% to its current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policyhere.
TORONTO, ON / ACCESSWIRE / September 17, 2024 / Aclara Resources Inc. ("Aclara" or "Company") (TSX:ARA) is pleased to announce that the Chilean government has unveiled a comprehensive "Industrial Strengthening Plan" for the Biobío region. This plan highlights the Penco Module as one of the key projects selected to bolster the region's future economic growth.
The Industrial Strengthening Plan aims to revitalize the Biobío economic landscape, which has faced challenges due to slow economic activity and lack of consistent new investments over the past two decades. Key objectives include accelerating private investment and enhancing the capabilities of institutions responsible for investment approvals. Aclara's Penco Module is among 25 large-scale projects featured, representing a combined potential investment of US$ 6.8 billion and the creation of up to 5,000 jobs during their operational phases, significantly advancing regional development.
Aclara's CEO, Ramon Barua, commented:"This announcement reaffirms the strategic nature of our Penco Module project for the Biobío region and the Chilean government. Aclara, in partnership with CAP, remains fully committed to the economic growth of the Biobío region and working closely with local communities and regional authorities to progress the development of the Penco Module. We remain focused on advancing the permitting process and are dedicated to working collaboratively with the SEA throughout the assessment and review process."
About Acara Aclara Resources Inc. (TSX:ARA) is a development-stage company that focuses on heavy rare earth mineral resources hosted in Ion-Adsorption Clay deposits. The Company's rare earth mineral resource development projects include the Penco Module in the Bio-Bio Region of Chile and the Carina Module in the State of Goiás, Brazil.
Aclara's rare earth extraction process offers several environmentally attractive features. Circular mineral harvesting does not involve blasting, crushing, or milling, and therefore does not generate tailings and eliminates the need for a tailing's storage facility. The extraction process developed by Aclara minimizes water consumption through high levels of water recirculation made possible by the inclusion of a water treatment facility within its patented process design. The ionic clay feedstock is amenable to leaching with a common fertilizer main reagent, ammonium sulfate. In addition to the development of the Penco Module and the Carina Module, the Company will continue to identify and evaluate opportunities to increase future production of heavy rare earths through greenfield exploration programs and the development of additional projects within the Company's current concessions in Brazil, Chile, and Peru.
Aclara has decided to vertically integrate its rare earths concentrate production towards the manufacturing of rare earths alloys. The Company has established a U.S.-based subsidiary, Aclara Technologies Inc., which will focus on developing technologies for rare earth separation, metals, and alloys. Additionally, the Company is advancing its metals and alloys business through a joint venture with CAP S.A., leveraging CAP's extensive expertise in metal refining and special ferro-alloyed steels
Forward-Looking StatementsThis press release contains "forward-looking information" within the meaning of applicable securities legislation, which reflects the Company's current expectations regarding future events, including statements with regard to, among other things, the strategic nature of the Penco Module and the EIA evaluation process. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the Company's control. Such risks and uncertainties include, but are not limited to, the factors discussed under "Risk Factors" in the Company's annual information form dated as of March 22, 2024 filed on the Company's SEDAR+ profile. Actual results, timing, performance, achievements or future events or developments could differ materially from those expressed or implied herein. Unless otherwise noted or the context otherwise indicates, the forward-looking information contained in this news release is provided as of the date of this news release and the Company does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required under applicable securities laws.
For further information, please contact: Ramón Barúa Costa Chief Executive Officerinvestorrelations@aclara-re.com
SOURCE: Aclara Resources Inc.
View the original press release on accesswire.comThe proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Enersys (ENS). ENS is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 10.42. This compares to its industry's average Forward P/E of 22.67. Over the past year, ENS's Forward P/E has been as high as 12.63 and as low as 9.92, with a median of 11.01.
Investors should also recognize that ENS has a P/B ratio of 2.17. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 3.99. ENS's P/B has been as high as 2.56 and as low as 2.05, with a median of 2.23, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. ENS has a P/S ratio of 1.13. This compares to its industry's average P/S of 2.97.
Finally, investors will want to recognize that ENS has a P/CF ratio of 10.98. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. ENS's P/CF compares to its industry's average P/CF of 31.51. Within the past 12 months, ENS's P/CF has been as high as 13.52 and as low as 9.90, with a median of 11.07.
These are just a handful of the figures considered in Enersys's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that ENS is an impressive value stock right now.
Zacks Investment Research
For Immediate Release
Chicago, IL – September 16, 2024 – Today, Zacks Investment Ideas feature highlights Hubbell Inc. HUBB and Willdan Group, Inc. WLDN.
Under-the-Radar Stocks to Buy Based on This Wall Street Megatrend
Today’s episode of Full Court Finance at Zacks dives into the multi-decade infrastructure spending boom that has a chance to become the most dominant trend on Wall Street. The episode then explores two under-the-radar, highly-ranked Zacks stocks—Hubbell and Willdan—that investors might want to buy to ride the new-age infrastructure megatrend, spanning AI data centers, energy efficiency, and beyond.
Infrastructure Spending Boom
The U.S. recently kickstarted a multi-trillion-dollar, multi-decade infrastructure spending boom that has a chance to become the most dominant trend on Wall Street. The new age of infrastructure includes AI data centers, revamped electricity grids, energy efficiency, and much more.
Compounding megatrends across technology, energy, deglobalization, and beyond create a potential once-in-a-lifetime opportunity for investors to ride the wide-ranging infrastructure spending spree.
The U.S. committed nearly $2 trillion to broader spending efforts across energy and infrastructure in the last several years. On top of that, technology giants like Microsoft and big banks like JPMorgan Chase are helping spur the sprawling wave of infrastructure spending.
Why Hubbell Is a Worthy Buy-and-Hold Stock
Hubbell Inc. is a leading utility and electrical solutions manufacturer with an established track record and a massive portfolio of products and solutions. Hubbell is growing alongside the rapid expansion of data centers to fuel the AI revolution, electrification, grid modernization, and the broader energy transition.
HUBB grew its revenue by an average of 14% during the past three years. Hubbell's recent stretch is part of a long history of growth only interrupted a few times over the past 25 years.
Hubbell posted a beat-and-raise second quarter. HUBB’s CEO said once again that strong spending trends across datacenters, renewables, grid modernization, and electrification are fueling its near-term and long-term outlook.
Hubbell’s upbeat EPS outlook helps it earn a Zacks Rank #2 (Buy). Hubbell is projected to grow its earnings by 7% in 2024 and 8% in 2025, driven by 8% and 5%, respective sales expansion.
Hubbell crushed the Zacks Industrial Products sector and the S&P 500 over the past 20 years, up 790% vs. the benchmark’s 420% and its sector’s 160%. The stock has climbed 110% in the past three years, yet HUBB is neck-and-neck with the benchmark during the trailing 12 months.
Hubbell trades around 6% below its highs. HUBB stock recently found support at its 200-day moving average again. HUBB could be ready to break out of its trading range to new highs.
HUBB trades near its 10-year median and in line with the Zacks Machinery-Electrical Market at 22.8X forward 12-month earnings. On top of that, Hubbell pays a dividend that yields 1.2%.
Buy Small-Cap Willdan Stock for 30% Upside?
Willdan Group, Inc. provides professional, technical, and consulting services to utilities, government agencies, and private industry. Willdan’s offerings span from electric grid solutions and energy efficiency to sustainability, engineering, and beyond.
Willdan’s stands to benefit from the attempt to rapidly move away from fossil fuels as energy demand booms. WLDN’s pitch to clients and Wall is that Willdan helps “transitions communities to clean energy and a sustainable future.”
Willdan reported a blowout beat-and-raise second quarter in early August. Willdan also landed a few key contracts during the period, including with the State of Virginia. WLDN is is also working with Facebook parent Meta to “study emissions related to voluntary clean energy procurement.” Willdan most recently earned a contract to help deliver energy savings for the fifth-largest school district in the U.S.
Willdan’s upward earnings revisions help it earn a Zacks Rank #1 (Strong Buy). The company is projected to expand its adjusted EPS by 20% in 2024 and 12% next year. WLDN has also crushed our bottom-line estimate by an average of 110% in the past three quarters.
Willdan stock has climbed roughly 1,200% during the past 15 years and 180% in the last 10. Despite Willdan’s surge off its 2022 lows, WLDN stock trades 30% below its 2021 peaks and 32% below its average Zacks price target. Willdan is back above its 50-month moving average and finding support near its 21-day, while trading at neutral RSI levels.
Valuation-wise, Willdan trades near its 10-year median at 19.4X forward 12-month earnings and nearly in line with its industry despite its long-term and near-term outperformance.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Zacks Investment Research
Investors with an interest in Manufacturing - Electronics stocks have likely encountered both EnerSys (ENS) and ABB (ABBNY). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
EnerSys has a Zacks Rank of #2 (Buy), while ABB has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that ENS likely has seen a stronger improvement to its earnings outlook than ABBNY has recently. However, value investors will care about much more than just this.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
ENS currently has a forward P/E ratio of 10.95, while ABBNY has a forward P/E of 25.53. We also note that ENS has a PEG ratio of 0.61. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ABBNY currently has a PEG ratio of 2.88.
Another notable valuation metric for ENS is its P/B ratio of 2.17. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, ABBNY has a P/B of 7.76.
Based on these metrics and many more, ENS holds a Value grade of A, while ABBNY has a Value grade of C.
ENS has seen stronger estimate revision activity and sports more attractive valuation metrics than ABBNY, so it seems like value investors will conclude that ENS is the superior option right now.
Zacks Investment Research
Today’s episode of Full Court Finance at Zacks dives into the multi-decade infrastructure spending boom that has a chance to become the most dominant trend on Wall Street. The episode then explores two under-the-radar, highly-ranked Zacks stocks—Hubbell and Willdan—that investors might want to buy to ride the new-age infrastructure megatrend, spanning AI data centers, energy efficiency, and beyond.
Infrastructure Spending Boom
The U.S. recently kickstarted a multi-trillion-dollar, multi-decade infrastructure spending boom that has a chance to become the most dominant trend on Wall Street. The new age of infrastructure includes AI data centers, revamped electricity grids, energy efficiency, and much more.
Compounding megatrends across technology, energy, deglobalization, and beyond create a potential once-in-a-lifetime opportunity for investors to ride the wide-ranging infrastructure spending spree.
The U.S. committed nearly $2 trillion to broader spending efforts across energy and infrastructure in the last several years. On top of that, technology giants like Microsoft and big banks like JPMorgan Chase are helping spur the sprawling wave of infrastructure spending.
Why Hubbell is a Worthy Buy-and-Hold Stock
Hubbell Incorporated HUBB is a leading utility and electrical solutions manufacturer with an established track record and a massive portfolio of products and solutions. Hubbell is growing alongside the rapid expansion of data centers to fuel the AI revolution, electrification, grid modernization, and the broader energy transition.
HUBB grew its revenue by an average of 14% during the past three years. Hubbell's recent stretch is part of a long history of growth only interrupted a few times over the past 25 years.
Hubbell posted a beat-and-raise second quarter. HUBB’s CEO said once again that strong spending trends across datacenters, renewables, grid modernization, and electrification are fueling its near-term and long-term outlook.
Hubbell’s upbeat EPS outlook helps it earn a Zacks Rank #2 (Buy). Hubbell is projected to grow its earnings by 7% in 2024 and 8% in 2025, driven by 8% and 5%, respective sales expansion.
Hubbell crushed the Zacks Industrial Products sector and the S&P 500 over the past 20 years, up 790% vs. the benchmark’s 420% and its sector’s 160%. The stock has climbed 110% in the past three years, yet HUBB is neck-and-neck with the benchmark during the trailing 12 months.
Hubbell trades around 6% below its highs. HUBB stock recently found support at its 200-day moving average again. HUBB could be ready to break out of its trading range to new highs.
HUBB trades near its 10-year median and in line with the Zacks Machinery-Electrical Market at 22.8X forward 12-month earnings. On top of that, Hubbell pays a dividend that yields 1.2%.
Buy Small-Cap Willdan Stock for 30% Upside?
Willdan Group, Inc. WLDN provides professional, technical, and consulting services to utilities, government agencies, and private industry. Willdan’s offerings span from electric grid solutions and energy efficiency to sustainability, engineering, and beyond.
Willdan’s stands to benefit from the attempt to rapidly move away from fossil fuels as energy demand booms. WLDN’s pitch to clients and Wall is that Willdan helps “transitions communities to clean energy and a sustainable future.”
Willdan reported a blowout beat-and-raise second quarter in early August. Willdan also landed a few key contracts during the period, including with the State of Virginia. WLDN is is also working with Facebook parent Meta to “study emissions related to voluntary clean energy procurement.” Willdan most recently earned a contract to help deliver energy savings for the fifth-largest school district in the U.S.
Willdan’s upward earnings revisions help it earn a Zacks Rank #1 (Strong Buy). The company is projected to expand its adjusted EPS by 20% in 2024 and 12% next year. WLDN has also crushed our bottom-line estimate by an average of 110% in the past three quarters.
Willdan stock has climbed roughly 1,200% during the past 15 years and 180% in the last 10. Despite Willdan’s surge off its 2022 lows, WLDN stock trades 30% below its 2021 peaks and 32% below its average Zacks price target. Willdan is back above its 50-month moving average and finding support near its 21-day, while trading at neutral RSI levels.
Valuation-wise, Willdan trades near its 10-year median at 19.4X forward 12-month earnings and nearly in line with its industry despite its long-term and near-term outperformance.
Zacks Investment Research
It is not easy to find value stocks. Being aware of a company's key financial numbers like earnings per share and sales growth can help investors identify stocks that are trading for less than their worth. However, a proper analysis of the fundamentals with the help of a number of metrics is required to determine whether a stock is a good bargain or not.
Though price-to-earnings (P/E) and price-to-sales (P/S) valuation tools are more commonly used for stock selection, the price-to-book ratio (P/B ratio) is also an easy-to-use metric for identifying low-priced stocks with high-growth prospects.
The P/B ratio is calculated as below:
P/B ratio = market price per share/book value of equity per share.
The P/B ratio helps to identify low-priced stocks with high growth prospects. SSR Mining SSRM, Axis Capital Holdings AXS, Unum Group UNM, Enersys ENS and ZIM Integrated Shipping Services ZIM are some such stocks.
Now, let us understand the concept of book value.
What is Book Value?
There are several ways by which book value can be defined. Book value is the total value that would be left over, according to the company’s balance sheet, if it goes bankrupt immediately. In other words, this is what shareholders would theoretically receive if a company liquidates all its assets after paying off all its liabilities.
It is calculated by subtracting total liabilities from the total assets of a company. In most cases, this equates to common stockholders’ equity on the balance sheet. However, depending on the company’s balance sheet, intangible assets should also be subtracted from the total assets to determine book value.
Understanding P/B Ratio
By comparing the book value of equity to its market price, we get an idea of whether a company is under or overpriced. However, like P/E or P/S ratio, it is always better to compare P/B ratios within industries.
A P/B ratio of less than one means that the stock is trading at less than its book value or the stock is undervalued and, therefore, a good buy. Conversely, a stock with a ratio greater than one can be interpreted as being overvalued or relatively expensive.
For example, a stock with a P/B ratio of 2 means that we pay $2 for every $1 of book value. Thus, the higher the P/B, the more expensive the stock.
But there is a warning. A P/B ratio of less than one can also mean that the company is earning weak or even negative returns on its assets or that the assets are overstated, in which case the stock should be shunned because it may be destroying shareholder value. Conversely, the stock’s price may be significantly high — thereby pushing the P/B ratio to more than one — in the likely case that it has become a takeover target, a good enough reason to own the stock.
Moreover, the P/B ratio is not without limitations. It is useful for businesses like finance, investments, insurance and banking or manufacturing companies with many liquid/tangible assets on the books. However, it can be misleading for firms with significant R&D expenditure, high debt, service companies, or those with negative earnings.
In any case, the ratio is not particularly relevant as a standalone number. One should analyze other ratios like P/E, P/S and debt to equity before arriving at a reasonable investment decision.
Screening Parameters
Price to Book (common Equity) less than X-Industry Median: A lower P/B compared with the industry average implies that there is enough room for the stock to gain.
Price to Sales less than X-Industry Median: The P/S ratio determines how much the market values every dollar of the company’s sales/revenues — a lower ratio than the industry makes the stock attractive.
Price to Earnings using F(1) estimate less than X-Industry Median: The P/E ratio (F1) values a company based on its current share price relative to its estimated earnings per share — a lower ratio than the industry is considered better.
PEG less than 1: PEG links the P/E ratio to the future growth rate of the company. The PEG ratio portrays a more complete picture than the P/E ratio. A value of less than 1 indicates that the stock is undervalued, and investors need to pay less for a stock that has bright earnings growth prospects.
Current Price greater than or equal to $5: They must all be trading at a minimum of $5 or higher.
Average 20-Day Volume greater than or equal to 100,000: A substantial trading volume ensures that the stock is easily tradable.
Zacks Rank less than or equal to #2: Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks are known to outperform irrespective of the market environment.
Value Score equal to A or B: Our research shows that stocks with a Value Score of A or B, when combined with a Zacks Rank #1 or 2, offer the best opportunities in the value investing space.
Here are five of the six stocks that qualified the screening:
Based in Vancouver, Canada, SSR Mining is a mining company focusing on the operation, development, exploration and acquisition of precious metal projects. The company primarily explores for gold, silver, and mineral properties. It principally serves electronics, coin fabrication, dentistry, jewelry, industrial, technology, pharmaceuticals and solar energy markets.
SSRM currently has a Zacks Rank #2 and a Value Score of A. Youcan see the complete list of today’s Zacks #1 Rank stocks here.
SSR Mining has a projected 3-5-year EPS growth rate of 17.69%.
AXIS Capital Holdings is the Bermuda-based holding company for the AXIS group of companies. The company provides a broad range of specialty insurance and reinsurance solutions to its clients on a worldwide basis through operating subsidiaries and branch networks based in Bermuda, the United States, Europe, Singapore, Canada, Latin America and the Middle East.
AXS presently has a Zacks Rank #2 and a Value Score of A. The company has a projected 3-5-year EPS growth rate of 27.82%.
Headquartered in Chattanooga, TN, Unum Group was created following the June 1999 merger of Provident Companies and Unum Corporation. Along with disability insurance, the company provides long-term care insurance, life insurance, employer- and employee-paid group benefits and related services.
UNM has a Zacks Rank #2 and a Value Score of A. UNM has a projected 3–5-year EPS growth rate of 8.0%.
Headquartered in Pennsylvania, EnerSys engages in manufacturing, marketing and distribution of various industrial batteries worldwide. It has a Zacks Rank #2 currently.
ENS has a Value Score of A. EnerSys has a projected 3–5-year EPS growth rate of 18.0%.
Haifa, Israel-based ZIM Integrated Shipping Services provides container shipping and related services, along with its subsidiaries. The company offers dry, reefer, project, out-of-gauge, breakbulk and dangerous cargo services, and inland transport services.
ZIM Integrated Shipping Services has a Zacks Rank #1 and a Value Score of A at present. ZIM has a projected 3-5-year EPS growth rate of 47.44%.
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